What Is NPS Vatsalya? All You Need To Know About New Pension Plan Being Launched By FM Nirmala Sitharaman Today

9/18/2024 12:00:12 AM

(MENAFN- Live Mint) Finance Minister Nirmala Sitharaman is scheduled to launch the Centre's NPS Vatsalya Scheme today (September 18), according to a Finance Ministry release.

"In pursuance of the announcement in the Union Budget 2024-25, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman will launch the NPS Vatsalya scheme on September 18, in New Delhi. School children will also join the launch," the release said.

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The release added that audiences at other locations, including school children , will virtually join the Delhi broadcast.

At the launch event, Sitharaman will release the scheme brochure, reveal an online platform for subscribing to NPS Vatsalya, and distribute PRAN cards to new minor subscribers, it added.

NPS Vatsalya events will be organized at nearly 75 locations in India. Other locations will join the launch through video conference and distribute PRAN membership to new minor subscribers in that location.

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The Scheme was announced by Sitharaman in the Union Budget 2024-25.“NPS Vatsalya, a plan for contribution by parents and guardians for minors will start,” she said.
Billed as the government's“commitment to promote early start in securing financial future of children”, the scheme will initiate minor subscribers into the scheme with Permanent Retirement Account Number (PRAN) cards, it added.
“NPS Vatsalya will allow parents to save for their children's future by investing in a pension account and ensure long-term wealth with the power of compounding,” the ministry release said.
The Scheme offers flexible investment options, allowing parents and guardians to make contributions of ₹1,000 annually in the child's name. The ministry said this makes the scheme“accessible to families from all economic backgrounds”.
When the child reaches age of majority, the plan can be converted seamlessly into a normal NPS account, it said.
“This new initiative is designed to start early in securing the financial future of children, marking an important step in India's pension system,” according to the Finance Ministry.
The NPS Vatsalya Scheme will be run under the Pension Fund Regulatory and Development Authority (PFRDA).

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